A punishment imposed for violating a law or agreement; money one will pay for breaking a law or violating part or all of the terms of a contract.

Use penalty in a sentence

You should always try and do things the right way so that you do not have to avoid any sort of penalty.

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The penalty for withdrawing early from the account was large but it only presumable be need to be done for emergencies.

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If you make a late payment to your credit card company, you will then have to pay a penalty fee for the missed payment.

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in the penalty box Series I Bond